The owner of a Florida-based telecommunications company has been sentenced to five years in prison for orchestrating a massive fraud scheme that exploited a federal cellphone subsidy program known informally as the “Obama phone” initiative.
Issa Asad, 51, CEO of Q Link Wireless LLC, pleaded guilty to conspiring to commit wire fraud and stealing government funds from the Lifeline program, the Department of Justice announced.
What Is the Lifeline Program?
The Lifeline program, started in 1985 and expanded during the Obama administration, provides discounted or free phone service to low-income Americans. The program gained national attention during the 2012 election after a viral video featured a woman praising her “Obama phone”—a term widely embraced by some providers but never officially adopted by the government.
$128 Million Fraud Scheme
Asad and Q Link admitted to defrauding the Federal Communications Commission (FCC) between 2012 and 2021 by:
-
Submitting false subscriber information
-
Claiming reimbursements for ineligible or fake customers
-
Keeping funds they weren’t entitled to
-
Deceiving the FCC about compliance with program rules
The DOJ called this one of the largest financial penalties in FCC history.
As part of the plea deal:
PPP Loan Abuse During COVID
In a separate guilty plea, Asad admitted to money laundering related to the Paycheck Protection Program (PPP) during the COVID pandemic.
According to prosecutors, he used SBA loan funds meant for small business relief to finance:
-
Home construction
-
A Land Rover payment
-
Jewelry purchases
-
American Express bills
-
University donations
-
Property taxes
He was ordered to pay over $1.7 million in restitution to the Small Business Administration for the misuse of PPP funds.
Criminal Past
Asad’s criminal history includes a 2014 incident in which he was charged with murder after allegedly running over a groundskeeper in a dispute over a $65 lawn service payment. He ultimately pleaded no contest to misdemeanor culpable negligence, received one year of probation, and was fined $225, according to the Miami Herald.
